Rewritten Article:
The cryptocurrency market had a tumultuous week, with Ethereum’s price experiencing significant fluctuations. Ethereum successfully surpassed the critical resistance level of $3,200 and is currently trading at $3,245. However, investors are now wondering if the price of Ethereum could drop to the $2,700 support level in the coming days or if it will once again surpass $3,500.
Concerns arise as Ethereum’s price shows a downward trend. Despite initially seeing a 2% increase, this upward movement was not sustained. The recent decline followed by a slight recovery has left investors confused.
According to data from Santiment, Ethereum’s price volatility has negatively impacted its social volume, despite most investors still being in profit. Furthermore, the charts indicate a downward sentiment, suggesting that the price could continue to retract. This raises the possibility of reaching the $2,700 support level, as suggested by crypto analyst Crypto Tony. If Ethereum drops to this level, it could pose challenges in reaching the $3,600 resistance level.
Santiment’s data also reveals an increase in selling pressure on Ethereum. The rise in exchanges over the past week indicates a strengthening of this selling pressure. However, it is worth noting that whales, influential investors, still have trust in Ethereum, as evidenced by the increase in supply held by top addresses.
Analysis of the daily chart shows the Money Flow Index moving upward, while other indicators, such as the Relative Strength Index and Chaikin Money Flow, indicate a high likelihood of a price drop.
The $2,700 support level becomes crucial for Ethereum at this stage. If it falls below this level, it is predicted that Ethereum’s price could further decline to $2,500. However, it is important to remember that market uncertainties always exist. While Ethereum’s price sometimes moves independently from Bitcoin, the leader of altcoins, a decline in BTC could have a significant impact on Ethereum.
Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
